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The Federal Debt Is ... Shrinking?

The U.S. Treasury Department
The U.S. Treasury DepartmentPhotograph by Daniel Stein/Getty Images

The federal debt is exploding—except right now, when, believe it or not, it’s actually shrinking. The Treasury Department announced on Monday that the nation’s net marketable debt is likely to decline by about $35 billion from the end of March to the end of June.

Tax receipts are coming in above projections and spending is diminishing, Treasury said. It helps that the second quarter is typically the best of the year for budget-balancing.